HUP SENG INDUSTRIES BERHAD ("Hup Seng" or the "Company") Redeployment for the Utilisation of Proceeds

HUP SENG INDUSTRIES BERHAD

Type

Announcement
SubjectHUP SENG INDUSTRIES BERHAD ("Hup Seng" or the "Company")
Redeployment for the Utilisation of Proceeds

Contents :

The Board of Directors of Hup Seng wishes to announce that an amount of approximately RM5.55 million out of the total proceeds of RN32.098 million arising from the Company’s earlier proceeds from public issue arising from its initial public offerings, which was implemented on 2 November, 2000, remains unutilised as at 31 March, 2003 (“Unutilised Proceeds”).


It is stated as one of the conditions in the Securities Commission (“SC”) approval letter dated 3 July, 2000 that should there be any change involving less than 25% of the utilisation of proceeds as originally proposed, appropriate disclosure is required to be made to the shareholders of Hup Seng.

In this respect, we wish to announce that the Company proposes to redeploy the Unutilised Proceeds towards working capital for Hup Seng and its subsidiaries (“Redeployment of Unutilised Proceeds”).

(please refer to the table below)

The rationale for the Redeployment of Unutilised Proceeds is that the Company does not foresee the need to acquire additional lorries and motor vehicle or new oven, mixers and packaging units in view of the global economic scenario and external risk that may affect our Malaysian economy which has a direct impact on the business of Hup Seng.

This announcement is dated 17 June, 2003.

Description
As stated in the Company’s Prospectus dated 25 September, 2000
Amount utilised as at 31 March, 2003
Unutilised Proceeds
Revision to the utilisation of the Unutilised Proceeds
Percentage of revised amount when compared to the total utilisation of proceeds as originally proposed
RM’000
RM’000
RM’000
RM’000
%
Purchase of new oven, mixers and packaging units
18,117
18,087
30
-
0.09
Factory expansion and to increase warehouse capacity at branches
2,243
2,210
33
-
0.10
Purchase of lorries and motor vehicles
848
105
743
-
2.31
Working capital
9,090
4,430
4,660
5,550
14.52
Listing expenses
1,800
1,716
84
-
0.26
Total
32,098
26,548
5,550
5,550
17.29



Announcement Info

Company NameHUP SENG INDUSTRIES BERHAD  
Stock Name HUPSENG    
Date Announced17 Jun 2003  
CategoryGeneral Announcement
Reference NoHS-030617-5D460